Bitcoin Depot filed for Chapter 11 protection on May 18 in the Southern District of Texas and said it would wind down operations and sell assets. The company said its kiosk network, which had more than 9,000 locations globally as of August 2025, would go offline the same day.

The filing lands after a brutal first quarter that the company had already telegraphed in a May 12 SEC disclosure. Revenue fell 49.2% from a year earlier, gross profit collapsed 85.5%, and management said there was substantial doubt about Bitcoin Depot's ability to continue as a going concern. The company reported a net loss of $9.5 million for the quarter, reversing net income of $12.2 million a year earlier.

Bitcoin Depot tied the deterioration to state and municipal restrictions, lower transaction limits, enhanced identity verification requirements, litigation and more than $20 million in accrued legal judgments. That is the pressure point for the entire kiosk business: the company built a national footprint around a product that remains expensive to use. FinCEN puts kiosk fees at 7% to 20%, far above what centralized exchanges typically charge.

The collapse also comes as regulators and law enforcement have sharpened their focus on crypto kiosks. FTC data showed reported Bitcoin ATM fraud totaled more than $65 million in the first half of 2024, with a median reported loss of $10,000. FBI data for 2025 recorded 13,460 complaints tied to crypto kiosks and $389 million in total reported losses, a 58% jump. Adults 60 and older accounted for roughly $257.5 million of that figure.

The policy response has been moving in the same direction. Indiana enacted a statewide prohibition on virtual currency kiosks. Tennessee made installing or operating such kiosks a Class A misdemeanor. Minnesota approved a ban set to take effect in 2026. For kiosk operators, the issue is no longer just bad headlines; it is a shrinking legal map.

Even so, the machines have not disappeared. Finbold's compilation of Coin ATM Radar data shows the worldwide Bitcoin ATM count rose from 37,722 to 39,158 in 2025. The US ended the year with 30,617 machines after starting with 30,119, while Australia added 601 machines and posted 43% growth. Canada grew 8.4%, and Europe expanded 6.5%.

For Bitcoin Depot, though, the numbers tell a different story. The company has said it will shut down its network and sell the pieces, leaving a business that once helped define the Bitcoin ATM market to close the kiosks before regulators and losses closed in further.